Enterprise Resource Planning (ERP) project management is undergoing a fundamental shift. Traditional ERP project managers who focus on schedules, budgets, and vendor coordination, are becoming less relevant in a world where AI and automation streamline administrative tasks. Meanwhile, organisations implementing ERP solutions like Microsoft Dynamics 365, are demanding more from their project leaders. The future belongs to ERP delivery leads; specialists who combine deep enterprise application knowledge with facilitation skills, compliance expertise, and strategic alignment capabilities.
In this blog, I explore how AI and technological specialisation are reshaping ERP project management and why consulting firms such as Microsoft Dynamics partners must adapt to remain competitive.
The Death of the Generic ERP Project Manager
For decades, ERP projects relied on traditional project managers to ensure deliverables were met, budgets controlled, and vendors managed. However, the emergence of cloud-based enterprise applications, agile business transformations, and AI-driven automation is rendering generic ERP project management obsolete. Some of the challenges with traditional ERP project management are:
Rigid adherence to static plans
Many PMs resist adapting to emerging risks and business needs, fearing scope creep rather than enabling business agility. This approach seems ideal for consulting companies that enter into contracts with their clients, where clear expectations about budget and timelines are defined before the implementation begins.
The problem with this approach is that new business needs and even technology can change rapidly during an ERP implementation. Therefore, trying to enforce compliance with a rigid plan when things change creates more problems than it can solve.
Excessive focus on tracking and reporting
Manual status updates, spreadsheets, and countless status meetings add little value in an era where AI can automate tracking. While project management requires detailed tracking and often complex and frequent reporting, most organisations still rely on manual data entry for these tasks; not capitalising on the opportunities that come with process automation or language models.
Limited understanding of ERP platforms
Traditional PMs often lack the deep technical and functional knowledge required to guide decision-making, which limits their effectiveness as delivery leads.
As PMs are required to take leading roles in ERP or CRM implementations, organisations are moving away from employing project managers with experience in business application delivery. They are requiring roles with a deeper understanding of the technology that they will deliver.
As AI handles the administrative burden, organisations are recognising that the real value of ERP leadership lies not in managing tasks but in driving transformation.
ERP Methodologies: Why Agile Hasn't Taken Over
The shift from on-premise to cloud applications created a case for Agile, which has replaced the waterfall approach in software delivery. However, while primarily used for software development, Agile has not replaced Waterfall in the delivery of business applications.
The Reality of ERP Delivery: Waterfall Still Dominates
Many tech companies have embraced Agile methodologies, but ERP implementation remains largely waterfall-driven. Microsoft's Success by Design methodology, for example, is a structured, phase-based approach rather than an iterative Agile framework. Waterfall or variations of this approach, are still widely used primarily because of key characteristics of ERP projects:
ERP Requires Structured Governance
Enterprise applications demand compliance, regulatory adherence, and structured decision-making. Agile's iterative cycles make governance more complex and increase the risks of breaking compliance.
Furthermore, since the ERP covers multiple business areas, the flexibility enabled by Agile allows teams to deliver work that can address the requirements of one area, for example, sales, and create issues with another area like treasury.
Integration & Complexity Challenges
ERP projects often involve multiple integrations, cross-department dependencies, and mission-critical functions that need a defined roadmap.
For more insights about integrations check my other post: https://www.d365training.com/post/how-the-mece-framework-can-streamline-erp-and-crm-integration
Using Agile in conjunction with a complex application landscape increases the risk of delivering features in one application that are incompatible with others. Agile can be effective if used to design and develop an integration, such as an ERP to CRM connector, but the overall project requires a phase-based approach.
Business Users Need Predictability
Unlike software development where Agile rules, ERP rollouts impact accounting, supply chain, and HR functions that require predictable transitions, not continuous iterations.
As such, a defined roadmap with clear stages and a fixed scope, even with a degree of flexibility, is still the preferred approach. Instead of replacing Waterfall with Agile, the future of ERP delivery may involve a hybrid model, leveraging AI for adaptive project governance while maintaining structured milestones.
Technology Alone Doesn't Modernise Project Management
While new project management tools designed for software delivery, such as Azure DevOps or Jira, can increase efficiencies compared to generic tools, they do not inherently modernise project management.
Many organisations believe that transitioning from spreadsheets to Azure DevOps represents progress, but without a change in methodology and mindset, it is merely digitising old processes. These are some of the limitations of relying solely on new tools:
Process inertia
Organisations still follow outdated governance models even when using modern project tools. Even when DevOps replaces spreadsheets, the delivery team still uses individual work items as rows in their spreadsheet, turning project delivery tools into expensive task trackers.
Tools ≠ Strategy
Simply implementing a new project management application does not create alignment between business goals and ERP delivery. The client's business case, operating models, and elements of their business that affect the ERP implementations rely on a delivery lead role, which project management software cannot effectively manage.
Automation ≠ Adaptability
Better software and automation can help project managers with tracking and reporting, but software alone cannot replace the need for a proactive delivery approach and strategic decision-making.
True modernisation comes from rethinking project execution strategies, not just replacing spreadsheets with new platforms. AI and automation should be viewed as enhancements to governance and facilitation, not as silver bullets for ERP project success.
How AI Will Transform ERP Project Management
AI will fundamentally change how ERP projects are managed by automating administrative burdens and providing real-time data insights.
Instead of relying on manual tracking and static reporting, AI-driven tools enable predictive analytics, automated risk detection, and intelligent resource allocation. These new capabilities will empower project managers to proactively address potential delays and inefficiencies, ensuring smoother project execution.
One of the most impactful areas AI will enhance is decision-making. AI-driven dashboards can consolidate project health metrics, resource availability, and risk assessments into a single view, allowing project managers to make informed decisions faster. Meeting summaries and action items can now be automatically generated, ensuring that teams stay aligned without the overhead of excessive documentation. AI can also optimise resource allocation by analysing workload distribution and skill availability, reducing bottlenecks and increasing efficiency.
By eliminating redundant administrative tasks, AI will allow ERP project managers to focus on high-value activities such as aligning business objectives with technology strategy, mitigating risks before they escalate, and fostering cross-functional collaboration. Rather than replacing project managers, AI will act as an augmentation tool that enables more effective leadership and execution of ERP implementations.
The Rise of the Application-Specific ERP Delivery Lead
Instead of hiring generic ERP project managers and giving them new tools, organisations are beginning to demand technology-specific ERP Delivery Leads; professionals with deep expertise in the ERP system that they will help implement.
Organisations can no longer afford to have project managers who lack deep expertise in the ERP system they are overseeing. Instead, businesses are looking for delivery leads who can bridge the gap between technology and business strategy while leveraging business applications to drive efficiency. Two main critical factors are driving this shift:
ERP Implementations Are No Longer One-Size-Fits-All
Companies do not hire SAP consultants to deliver Oracle projects. Similarly, they will stop hiring generalist PMs to manage highly complex Dynamics 365 implementations.
Consulting companies started to shift towards D365 PMs, SAP PMs, and Oracle PMs, not just PMs with "experience" in these platforms but actual product knowledge and consulting expertise.
Another element making traditional PM obsolete is that the fit-to-standard approach is now a blocker for most organisations that see enterprise applications as strategic tools. As a result of this more boutique approach, advisory, change management, and business process reengineering have made their way into any ERP project, making each ERP project unique.
Enterprise Architecture & Business Strategy Are More Connected Than Ever
ERP projects are not just IT initiatives, they impact entire business operations. The ERP Delivery Lead must understand business processes, compliance frameworks, and enterprise architecture to align ERP capabilities with organisational goals.
The New Role of the ERP PM in an AI-Driven World
As AI transforms project execution, the ERP project manager's role will evolve from a traditional oversight role to a more strategic ERP Delivery Lead. This shift will require new skills and responsibilities.
Technology-Specific Expertise
Deep understanding of Dynamics 365, SAP, or Oracle ERP solutions. The goal is not to turn the PM into a consultant or a solution architect, but to equip the project manager with sufficient skills to lead an enterprise application project.
AI and automation tools to support project execution
Utilising AI tools for scheduling, risk analysis, and workflow automation. New PMs must embrace, own and apply new technology to every project.
Business Process Alignment
Ensuring ERP implementations drive measurable business improvements. This shift means PMs can effectively help the delivery team realise the business goals of ERP implementations, going from monitoring tasks to ensuring the project delivers value for the organisation.
Governance & Compliance
Navigating regulatory frameworks and industry-specific compliance, including basic knowledge of accounting standards, data protection and security.
Facilitation & Conflict Resolution
Acting as a problem-solver between business stakeholders and vendors.
Future ERP Delivery Leads will need to blend project governance, AI-driven insights, and deep ERP knowledge to ensure successful implementations while keeping pace with rapid technological advancements.
Key Takeaways
Modernisation in project management goes beyond adopting new tools. Simply transitioning from spreadsheets to dedicated project management software does not inherently improve execution unless accompanied by a shift in governance and methodology.
The real transformation occurs when organisations align their project management approach with evolving business needs and AI-driven insights. The most successful ERP project leaders will be those who can bridge technology and business strategy, ensuring compliance, enterprise architecture alignment, and enhanced decision-making through AI-driven capabilities.
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